Carrier’s Decision to Pay the Amount of its Estimate and then Consider Supplemental Claims for Additional Damages Did Not Violate Florida Statute Section 627.7011

Slayton v. Universal Prop. & Cas. Ins. Co. (Fla. 5th DCA 2012)

A couple months after obtaining a homeowner’s insurance policy, an insured’s home suffered damage from a windstorm. The insured submitted an estimate prepared by a public adjustor for $61,638.00, although the insurer estimated the cost of repair to be $28,915.87. The insurer thus tendered a check to the insured in the amount of $27,915.87 (the total of the insurer’s estimate minus the $1,000.00 deductible), along with a letter advising that the payment did not necessarily constitute a full and final settlement of the claim and inviting the insured to submit supplemental claims for additional damages discovered in the property’s covered reconstruction and repair. Rather than filing supplemental claims, the insured sued the insurer for breach of contract, a suit which resulted in a directed verdict in the insurer’s favor.

The court reasoned that the insurer’s decision to pay the amount of its estimate (less the deductible) and then consider supplemental claims for additional damages discovered during or arising from the repairs was consistent with the terms of its insurance policy. On appeal, the insured argued that such a construction of the policy violated section 627.7011, Florida Statutes, which states that “[i]n the event of a loss for which a dwelling or personal property is insured on the basis of replacement costs, the insurer shall pay the replacement cost without reservation or holdback of any depreciation in value, whether or not the insured repairs the dwelling or property.” The fifth district summarily affirmed the trial court, noting that the insured’s statutory argument had not bee preserved.

Explore posts in the same categories: First Party Property, Fla. 5th DCA, Florida Court of Appeals, Homeowners Insurance

Tags: Breach of Contract, Homeowners Insurance

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